Argentina

  One of Argentina’s most frequently raised objections to dollarization is the immediate concern of a potential bank run. If deposits were to be dollarized without a sufficient reserve of actual dollars, people would rush to withdraw their dollars from banks, precipitating a run. This fear is particularly concerning given Argentina’s current economic situation, where […]

The original version of this post is co-authored with Emilio Ocampo. In 1976, the renowned economist Robert Lucas (1937-2023) introduced a thought-provoking paper that reshaped economic analysis. Lucas argued against relying solely on historical data to predict the outcomes of changes in economic policy, particularly when dealing with aggregate variables like consumption and investment. According to […]

  Alfredo Arízaga, who served as the Minister of Finance during Ecuador’s dollarization, offers insights on a key topic discussed in former President Jamil Mahuad’s book, “Así dolarizamos Ecuador” (translated as “How We Dollarized Ecuador”). Some have questioned whether dollarization was simply a response to the economic crisis of 1999. Arízaga firmly believes it was […]